Europe’s biggest banks, led by Lloyds Banking Group Plc and Deutsche Bank AG, have racked up more than $77 billion in legal costs since the financial crisis, five times their combined profit last year.
Rabobank Groep, the co-operative formed in 1898 to lend to Dutch farmers, was fined 774 million euros ($1.1 billion) and the chairman resigned as the scandal over the rigging of benchmark interest rates ensnared a fifth firm.
Hugo Boss AG fell to a 2 1/2-week low in Frankfurt trading after Hamburger Sparkasse cut its recommendation on Germany’s biggest luxury clothier to “ hold ” from “buy,” citing the cost of the retail chain’s expansion.
ThyssenKrupp AG, the German steelmaker seeking to divest its Americas unit, fell the most on the DAX index after two people briefed on its plans said it may hold on to its plant in Brazil and sell only the U.S. operation.
Commerzbank AG, Germany’s second- biggest bank, is seeking 2.5 billion euros ($3.25 billion) in the fifth capital increase in four years to repay debt from a government rescue. The shares fell to a record low.
Plans by Hamburger Sparkasse to buy a 25.1 percent stake in Kreissparkasse Herzogtum Lauenburg will be blocked this week by Germany’s cartel authorities, Financial Times Deutschland said, citing a person familiar with the matter.
Oswald Gruebel, chief executive officer of UBS AG, may face pressure to cut risk and shrink the investment bank as the board meets in Singapore, less than a week after a $2.3 billion loss from unauthorized trading.